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Public utilities

Public Utilities Commission Suspends Effective Date of Tariff Sheets Amidst Controversy Over Production Tax Credit Transfers

Strategic Insights

— 1 min read

The Colorado Public Utilities Commission has issued a decision suspending the effective date of tariff sheets filed by Public Service Company of Colorado (Public Service) to revise its Electric Commodity Adjustment (ECA) tariff to allow the company to pass through costs from the monetization of production tax credits (PTCs) associated with the Rush Creek Wind Project and the Cheyenne Ridge Wind Project. The Commission has referred the matter to an administrative law judge and set the matter for hearing.

Key Takeaways:

  • The Public Utilities Commission has suspended the effective date of the tariff sheets to May 15, 2023, to allow for further investigation and collaboration between the Commission and Public Service on several questions and concerns raised by the Commission's staff.
  • The Commission has referred the matter to an administrative law judge to set a hearing date, rule on interventions, and establish other procedures.
  • Public Service seeks to modify the ECA tariff sheets to accommodate transaction costs associated with the monetization of PTCs, which the company expects will benefit customers and more than offset the associated transaction costs.
  • The Commission's staff has raised several questions and concerns about the adoption of the proposed change, including the potential for all administrative and transaction costs to flow through the ECA and whether there should be an incentive mechanism developed to minimize costs and maximize benefits for ratepayers.
  • The Commission encourages parties to collaborate and address questions and concerns as quickly as possible to avoid preventing the company from pursuing beneficial PTC transferability actions.

Statistics:

  • The proposed effective date of the tariff sheets is January 15, 2023, which has been suspended until May 15, 2023.
  • The Commission has referred the matter to an administrative law judge, who will set a hearing date and establish other procedures.
  • The Commission's staff has raised twelve questions and concerns about the adoption of the proposed change.
  • Public Service expects the savings to customers from the mitigation and elimination of deferred tax assets to more than offset the associated transaction costs of the PTC monetization.

Sources:

  • "Decision No. C23-0030" (Colorado Public Utilities Commission)
  • "Proceeding No. 22AL-0555E" (Colorado Public Utilities Commission)
  • "Advice Letter No. 1912 - Electric" (Public Service Company of Colorado)

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